PTSG.L Regulatory News (PTSG)

5 July 2016

Premier Technical Services Group PLC

("PTSG" or the "Group")

Acquisition of UK Dry Risers Limited and UK Dry Risers Maintenance Limited

PTSG, the niche specialist services provider, is pleased to announce that it has extended its service offering to encompass the installation and maintenance of dry and wet riser systems through the acquisitions described below. Dry or wet risers are generally mandatory components of the fire-suppression systems designed into most high-rise commercial and residential buildings in the UK and are used to distribute water throughout all levels of the building in the event of fire.

UK Dry Risers Limited ("UKDR")

UKDR, a specialist in the installation of dry and wet riser systems, based in Bury, has been acquired for a maximum cash consideration of £2.1m comprising an initial payment of £1.2m, a fixed deferred payment of £50,000 payable on the first anniversary of completion and a contingent payment of a maximum of £0.86m also deferred for 12 months and subject to the business achieving a stretching milestone profitability target during the reference period.

Unaudited revenue of UKDR for the year ended 31 March 2016 was £3.0m, delivering a profit before tax of £0.7m. Unaudited net assets at the same date were £1.4m.

PTSG has inherited positive working capital balances of UKDR totalling £1.6m at completion, including cash balances of £0.8m. In addition to usual warranty protections, the acquisition agreement allows for the offset of uncollected debtor balances against the deferred consideration payments which might otherwise fall due and payable.

UK Dry Risers Maintenance Limited ("UKDRM")

PTSG has also acquired UKDRM, a tester, repairer and maintainer of dry and wet riser systems, based in Oldham, for a maximum consideration of £3.5m, comprising an initial cash payment of £1.8m, five fixed deferred payments of £60,000 payable on the anniversary of completion and the balance of up to £1.4m in contingent deferred payments over five years, subject to the business achieving stretching and escalating milestone profitability targets in each of those periods. The deferred consideration can be paid in cash or shares at the sole option of PTSG.

Unaudited revenue of UKDRM for the year ended 30 November 2015 was £1.1m, producing a profit before tax of £0.4m. Unaudited net assets at the same date were £0.5m.

PTSG has inherited positive working capital balances of UKDRM totalling £0.8m at completion, including cash balances of £0.5m.

The initial consideration for the acquisitions has been funded by draw-down against the newly increased debt facilities of £14.0m in aggregate, recently arranged with HSBC. Following the acquisitions and after netting off cash balances inherited with the acquired businesses, core borrowings of PTSG stand at £9.4m.

Both businesses will be integrated into PTSG's Electrical Services Division. Mike Charlton of UKDR and Daniel Hardman and Claire Spencer-Hardman of UKDRM will remain with the Group and work with PTSG's management team to grow and expand the acquired businesses. A large percentage of both businesses' activity is installation and recurring compliance testing and maintenance work, which complements the existing market leading PTSG model.

Paul Teasdale, CEO of PTSG, said:

"We warmly welcome UKDR and UKDRM to the PTSG Group. Both businesses are well established and respected in the UK and their addition to the Group expands our service offering into new niche markets. We look forward to working with Mike, Daniel and Claire and their colleagues on growing the business and expanding the Group's activities in these key areas.

The acquisitions are expected to be immediately earnings enhancing for the Group. We were pleased to confirm at last month's AGM that current trading within the existing Group is in line with the Board's expectations and the Directors are confident that PTSG's combination of a broad and loyal customer base with a high level of regulatory and compliance-driven recurring revenues provides a solid basis for continuing strong organic growth."

For further information, please contact:

About PTSG - www.ptsg.co.uk

PTSG is the UK's leading provider of façade access and fall arrest equipment services, lightning protection and electrical testing, high-level cleaning and training solutions.

Operating through four divisions, Access & Safety, Electrical Services, High Level Cleaning and Training Solutions, the Group provides highly-engineered industrial products and quality services and has a substantial presence in a number of niche markets.

PTSG provides a central information service for its businesses and champions the dissemination of key information and best practice. PTSG unites its constituent businesses under one clear identity, which supports smarter working and delivers top class service to its customers.

Headquartered in Castleford, West Yorkshire, the Group employs more than 350 people across 14 UK sites, who service more than 100,000 buildings across the whole of the UK for over 12,000 customers in a wide range of industries.